Automotive Semiconductor Market Growth Boost by Rising Technology Demand for Electric and Hybrid Vehicles
New York, US, June 02, 2023 (GLOBE NEWSWIRE) — According to a Comprehensive Report by MRFR/Market Research Future (MRFR), “Automotive Semiconductor Market Information by Component, Application, Vehicle Type, Vehicle Propulsion, and Region – Forecast till 2030″, The automotive semiconductor market can anticipate rising from USD 43,662.9 million in 2022 to USD 85,727.8 million by 2030, at a rate of 8.6% between 2022 and 2030.
Automotive Semiconductor Market Overview
Semiconductors are a unique class of electronic parts with the ability to conduct electricity under specific conditions. Vehicles employ semiconductors to make sure the corresponding component works effectively under all circumstances. As the fundamental elements required for the proper operation of car electronics, silicon and germanium are utilised to make the semiconductors used in automobiles. Vehicles with semiconductors installed can regulate a variety of functions, including the air conditioning system’s operation and the vehicle’s safety.
Market Competitive Landscape:
The affluent companies active in the automotive semiconductor industry are
- NXP Semiconductors
- Renesas Electronics
- Infineon Technologies
- Robert Bosch GmbH
- Texas Instruments
- ON Semiconductor
- Analog Devices
- Among others.
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Market USP Covered:
Automotive Semiconductor Market Restraints:
The operating faults under extreme environmental circumstances, such as extreme cold and high heat, are the main limitation of the automotive semiconductor market. Failures happen when there is excessive heat present because semiconductors have a tendency to melt or crack, the resistance rises, and the signal becomes too weak. In contrast, resistance decreases and stability is achieved when it is adjusted to an ideal temperature. Additionally, extremely cold temperatures are not good for semiconductors since they stop working. It operates best at temperatures between -25°C and +150°C on average. Therefore, nations like Russia and Canada prefer using fewer chips. Due to this, consumers start using different electronic components, like microcontrollers and ICs, which has an impact on the market’s expansion.
|Market Size 2030||2030: USD 85,727.8 Million|
|CAGR during 2022-2030||8.6% CAGR|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Application, Vehicle type, Vehicle Propulsion, and Region|
|Key Market Opportunities||Growing Demand For EV|
|Key Market Dynamics||Increasing trend of vehicle electrification Increase in safety features in vehicles|
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Automotive Semiconductor Market Drivers:
Due to strict emission regulations, such as favourable government subsidies and policies, the Kyoto Protocol, benefits on buying a hybrid electric vehicle and battery, and others, the demand for electric and hybrid vehicles is rising exponentially alongside that of vehicles with conventional internal combustion engines. For instance, the global sales of battery electric car batteries (processors) increased by 121% in 2021 compared to the year before, with China dominating the market with about three billion processors, up 172% from 2020.
Additionally, in 2021, the registration of new electric vehicles increased by 83%, 76%, and 62%, respectively, in Germany, the U.S., and the U.K. The global fleet of commercial and passenger ZEVs might total 677 billion vehicles by 2040, according to data from BloombergNEF. Furthermore, new data from BloombergNEF shows that global sales of plug-in hybrid and battery-electric vehicles reached 7.2% in 2021, up from 2.6% in 2019 and 4.3% in 2020. Businesses are actively engaged in the mass production of EVs. For instance, Ford, General Motors, and other automakers declared that by 2040, sales of entirely zero-emission vehicles will increase significantly.
As EVs require numerous controls and sensors to ensure effective engine performance, the demand for automotive semiconductors surged as a result. Substantial benefits can be realised with the expanded application of semiconductors. At the same time, the growing popularity of hybrid and battery electric vehicles, particularly in terms of powertrain electrification, necessitates the use of microcontrollers, ICs, and other semiconductor modules. When compared to conventional internal combustion engine vehicles, the manufacturing of hybrid and electric vehicles calls for a higher percentage of semiconductors.
The auto industry has been advancing steadily towards the innovative integration of electronics into vehicles to improve safety (radar and collision avoidance, automatic braking), infotainment (satellite radio and Bluetooth), navigation (GPS mapping), system monitoring, onboard computers, and many other areas, including the development of self-driving vehicles. The demand for electronic components has increased significantly as a result of this.
In comparison to traditional cars, electric and hybrid vehicles utilise more semiconductors. Application-specific integrated circuits, high-performance microcontrollers, power MOSFETs, microprocessors, and other parts are required for hybrid and electric vehicles. As a result, the industry has significant growth potential thanks to the growing electronic content in automobiles.
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Automotive Semiconductor Market COVID 19 Analysis
The effect of COVID-19 has resulted in a drop in revenues for the value chain participants, including suppliers, tier 1 and tier 2 suppliers, manufacturers, and aftermarket businesses, among others. However, the major governments carefully investigated the issue to avoid the enormous impact that was anticipated for the whole auto sector. To further prevent the spread of COVID-19, numerous regional governments and businesses enacted strict rules and other safety standards. The lockout has altered the outlook for the whole automotive semiconductor sector.
However, in 2021, the automotive sector recovered more quickly than anticipated due to rising consumer demand for new cars. The lack of automotive semiconductor chips, disruptions to the supply chain, and production delays brought about by shortages, however, resulted in a significant loss of income for semiconductor producers.
Application-based segmentation of the automotive semiconductor market includes powertrain, safety, body electronics, chassis, telematics and infotainment, and others. In terms of the revenue from the automotive semiconductor market in 2021, the powertrain segment retained the majority share with a contribution of roughly 25–30%. This is primarily due to the increasing demand for vehicles to use powertrain control systems.
By Vehicle Type
Passenger and commercial vehicles are included in the segmentation of the automotive semiconductor market depending on the type of vehicle. The passenger vehicle segment dominated the market in 2021 and is anticipated to grow at the fastest rate from 2022 to 2030. This is a result of the urbanisation and rapid population expansion. Thus, it has a favourable effect on market expansion.
Processors, analogue ICs, discrete power devices, sensors, memory devices, and logic ICs are included in the segmentation of the automotive semiconductor market, with respect to components. The processor category dominated the market in 2021 and is anticipated to grow at the fastest rate from 2022 to 2030. This is brought on by escalating industrialization and increased semiconductor investment. Thus, it has a favourable effect on market expansion.
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By vehicle propulsion, the Automotive Semiconductor Market has been divided into ICE Vehicles and Electric Vehicles. In 2021, the ICE Vehicle segment dominated the market, and it is anticipated that during the forecast period, 2022–2030, it will grow more quickly than any other segment.
In 2021, the North American automotive semiconductor market had a value of USD 10,731.4 million, and over the study period, it is anticipated to garner a 7.6% CAGR. The market expansion could be influenced by rising sales of electric commercial and passenger vehicles in the US. Additionally, the growing attention being paid to the commercialization and development of electric autonomous cars and Robo-taxis may present profitable growth prospects in the years to come.
Due to the implementation of cutting-edge technology in the automobile industry, Europe holds the second-largest market share for automotive semiconductors. Additionally, the UK automotive semiconductor market grew the fastest in the European region, while the German automotive semiconductor industry had the biggest market share. The UK economy depends heavily on the automotive sector. It employs about 180,000 people in manufacturing and another 864,000 workers in the broader automotive industry, accounting for 13% of the nation’s total goods exports.
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